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California strikes again against pdls

Date: Wed, 09/13/2006 - 05:44
Submitted by Not so Lucky on Wed, 09/13/2006 - 05:44
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Quote:
Arnold Schwarzenegger, Governor
Preston DuFauchard, Commissioner

Contact:
Susie Wong (916) 324-9011



CALIFORNIA DEPARTMENT OF CORPORATIONS ORDERS
PAYDAY LOAN STORES TO STOP LENDING IN STATE

Sacramento, September 8, 2006 - California Department of Corporations (DOC) has brought enforcement actions against four online stores that offer "pay day loans," on the ground that the stores have not been licensed in California.

Operators in the business of making a small, unsecured, short-term cash advance to customers, typically cleared on payday, are required to be licensed by DOC under the corp.ca.gov/pub/cddtl.htm California Deferred Deposit Transaction Law. To date, DOC has issued enforcement actions to 40 payday lenders operating in violation of state law.

In the current enforcement actions, DOC issued corp.ca.gov/enf/info/dr/06pdf/ameriloan.pdf" orders to four online Deferred Deposit lenders to prohibit them from entering into transactions in California. The companies named include Ameriloan.com, USFastCash.com, PreferredCashLoans.com, and UnitedCashLoans.com. The desist-and-refrain order further forbids Internet Cash Advance Marketing, Inc. of Vancouver B.C. and President
Clive L. Boulton from offering or arranging payday loans for the online companies without a state license. In November 2005, a Southern California customer of USFastCash was levied fees and charges in excess of the amount allowed under state law.

"Online deferred deposit transactions present a risk to California consumers, and may unfairly target military personnel," said Corporations Commissioner Preston DuFauchard. "In addition, allowing unlicensed Deferred Deposit lenders to operate in the state unfairly penalizes those companies that are properly licensed and examined by the department. The risks presented by this type of unlawful activity require swift and substantial enforcement response."

Counsel Uche Enenwali is responsible for this case.

The Department of Corporations (DOC) is California's investment and financing authority and is responsible for the regulation, enforcement, and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending, DOC residential mortgage lending, payday lenders, check sellers, bill payers, and debt reduction services. Consumers should contact the department to check on the status of the companies, investments or other services they are considering and the licensing status of the person. Contact DOC's toll-free Consumer Resource Center at 1-866-ASK-CORP (1-866-275-2677) or visit corp.ca.gov corp.ca.gov .


It's good news for the people residing in California. Those four loan companies are often discussed here. California attorney general is taking actions against the loan companies not licensed in the state. After being barred from doing business in California, they will continue with their illegal activities in other states. The government of each US state has to adopt such strict laws and throw payday loan companies out of business. That's the only remedy


Submitted by aciotsf on Wed, 09/13/2006 - 10:52

aciotsf

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You are absolutely right. It's kind of like drug dealers. Once you kick them out of your neighborhood, they move on down the road. This is why it's so important for EVERYONE to email their elected officials and throw enough of a stink to get them all out!
The more of a stink is raised, the quicker they will be banned.


Submitted by kscornell on Wed, 09/13/2006 - 18:37

kscornell

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Tammy, I agree, I have found myself wondering as well what are these internet pdls funding. You have to kind of wonder because they are difficult to trace and locate and have many different names. Have you ever wondered what the IRS might find if they confiscated their records (that is if there are any records besides the millions of debits they've taken from customers, which the proof lies in our bank statements.). Are these companies paying their fair share of taxes if any?


Submitted by WHEREAMI? on Wed, 09/20/2006 - 13:25

WHEREAMI?

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